Karl McDermott
Global Head of Business Development
View from the Top

Emerging Technology Will Transform Industry

Tue, 01/22/2019 - 17:20

Q: As a developer of a supply chain platform based on blockchain tech, how would you describe the disruptive nature of this technology?

A: Blockchain has the same transformative power the internet had in the early 1990s. Just like our lives changed thanks to the internet, processes will be revolutionized through automation and blockchain implementations. This technology offers a unique way of connecting and storing data, so people can trust it is not hackable and it can be used to connect businesses. It is important to note, however, that the idea of a universal registry of information for business is actually referred to as distributed ledger technology (DLT). Blockchain refers more to crypto science and dealing with investments, while DLT seeks to apply a similar methodology to improve corporate processes.

Q: What opportunities can be found in supply chain optimization?

A: The pharma industry faces the challenge of rapidly growing operations. Although the general industry is growing at a 6 percent rate, cold chain operations are increasing at a 12 percent rate. In this sector, we are trying to implement a safe and secure supply chain that ensures products are transported from the manufacturer’s facilities to the end customer, be it a hospital or a pharmacy, by a 3PL or transportation company that measures and controls temperature at all stages of the process.

Q: How would you rate Mexico’s position as a logistics hub?

A: From a global perspective, the way Mexico interacts in a global supply chain is not so different from what happens in other countries like Russia, Canada, the US or Argentina. The biggest area of opportunity to improve logistics processes in Mexico is to focus on activities where there is human intervention. Since there is a huge talent pool in the country, at times there are too many hands on the same bowl. Technology allows the improvement of processes, not by displacing people but by empowering them to create an added value.   

Q: How has your partnership with Cubic strengthened your operations and what other alliances have you established to boost your position in the market?

A: Cubic follows a warehousing-as-a-service business model. The company is employing underutilized space at company warehouses and selling it to third parties that need to grow their operations. Especially in Mexico City, there is a need for warehousing space because no new facilities are being built. Cubic took advantage of this need to build a solution that could help both clients and those companies with extra space at their facilities. Aside from Cubic, we have several global partnerships and collaborations to promote business transformation through DLT implementations. We are connected with 1,600 banks through the SWIFT network and we have alliances with 100 carriers. We are members of the Trusted IoT Alliance along with companies like Bosch and Cisco and we participate in the Blockchain in Transport Alliance and in the Enterprise Ethereum Alliance. All three of these alliances are international forums where innovative companies try to set fixed standards regarding new technologies that other companies can adopt.

Q: What are your growth expectations for Morpheus.Network and what role will Mexico play in your development strategy?

A: In 2018, we globally focused on developing experience in sectors such as automotive, pharma and the food chain. For 2019, we are looking at strengthening our offering for exports and industries like oil and gas. The first six months of the year will be dedicated to building our platform, while the following will focus on creating a revenue-generating model by testing our solution and building a commercial strategy. We are also working on a beta program called Morpheus.Ambassadors where early DLT adopters can register to become official promoters of our solutions. We have partners in Mexico, Argentina, Russia, Holland, Australia and even Nigeria.